PomegraSkydance Stock Falls 2% After $6B Cost Cuts
Why did Skydance stock fall 2%?
Skydance (SKYD) stock fell about 2% in after-hours trading on Monday from an $8.70 close after announcing $6B in cost cuts and Q3 revenue that slightly missed forecasts.
Key numbers
| Q3 revenue | $7.03B+5% YoY; est. $7.04B |
|---|---|
| Adjusted EBITDA | $1.0B14.2% margin |
| Net earnings | $73MGAAP EPS $0.06; estimates differ by source ($0.08 vs $0.20) |
| Targeted savings | $6B+Annual run-rate within 3 years |
| Gross debt after Warner deal | $87BAbout $10B cash |
| Share close on Nov 9 | $8.70+8.6%, then about -2% after hours |
What happened
Skydance (SKYD) stock fell about 2% in after-hours trading on Monday from an $8.70 close after announcing $6B in cost cuts and Q3 revenue that slightly missed forecasts. Sales for the three months to September rose 5% to $7.03 billion, just under the $7.04 billion analysts expected. The company, which closed its Warner Bros. Discovery purchase on October 6, plans at least $6 billion in yearly savings within three years, mostly from overhead, marketing, technology and vendor costs. The shares had jumped 8.6% earlier on Monday, before the report.
Why it matters
Skydance took on about $87 billion of debt to buy Warner Bros. Discovery, so cutting costs is how it plans to make that debt manageable. The workforce is expected to shrink as overlapping jobs are combined. Results were mixed: streaming sales grew 11%, but traditional TV sales fell 7%. Investors now want proof the savings arrive on time.
Who this affects
- MarketmixedLow impact
- Media investors weigh cost savings against debt and slower TV.
- CompanymixedMedium impact
- Shareholders face heavy debt, but promised savings could lift profits.
- CompetitorsneutralLow impact
- Disney and Netflix face a larger streaming rival.
- IndustrybearishMedium impact
- Media jobs likely shrink as merged studios cut overlapping work.
Skydance vs Disney, Netflix, Comcast
How we got here
Skydance completes its roughly $111B purchase of Warner Bros. Discovery.
Shares close up 8.6% at $8.70 ahead of Q3 results.
Skydance reports Q3 revenue of $7.03B and outlines $6B in cost cuts.
Shares fall more than 2% in after-hours trading.
What to watch
- Full-year 2027 guidance, which the company plans to give with Q4 results.Q4 2026
- Launch of the combined HBO Max and Paramount+ streaming bundle.Early 2027
- Warner Bros. film underperformance expected to cut Q4 profit by up to $200M.Q4 2026
Educational content only. Not investment advice.
More briefsAll briefs →
WuXi AppTec Stock Rises 2% After 1260H List Removal
WuXi AppTec (2359.HK) opened up 6.1% as the Pentagon dropped it from a Chinese military blacklist.
Fed Rate Hike Odds Hit 78% as Logan Urges More Hikes
Dallas Fed's Lorie Logan wants at least two more quarter-point hikes, as the jobs report lifts December bets.
Kospi Jumps 3.7% as Samsung, SK Hynix Lead Chip Rebound
Samsung Electronics (005930.KS) closed up 3.7% and SK hynix 5.3% after a US chip rally set off a buy sidecar